Bonn May 78 2011 Access to Carbon Finance for Improved Cook Stove Supplier Organisations Across East Africa A 6country PoA using AMSIIG Issues To see how easy open access to a PoA for a variety of Supplier ID: 1043976
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1. Improved Cook Stoves for East Africa (ICSEA) LtdBonn, May 7/8, 2011
2. Access to Carbon Finance for Improved Cook Stove Supplier Organisations Across East AfricaA 6-country PoA using AMS-II.G
3. IssuesTo see how easy ‘open access’ to a PoA for a variety of ‘Supplier Organisations’ would be.Definition of a feasible multi-country boundary = East African Community rationale.Local concerns to ensure that CER revenues are fairly shared with those who create the emission reductions.Constant enquiries to forward sell the PoA’s CERs – which it does not own.How to communicate PoA complexities to a broad audience locally.
4. Mission“To make affordable improved cook stoves available to low-income households on a fair trade basis”Key PoA features:ICSEA is a carbon access service organisationFunded by equity and grantsCPAs are free to market their CERs – no CME monopolyFair trade features are expected from CPAs in the way that carbon income is shared with stove usersCPAs are ICS ‘Supplier Organisations’ – they can be manufacturers, importers, distributors etc. – open accessStoves Support Facility and Seed Fund run by the CMEAll PoA registration documents were written in-house
5. Interested Buyer of Reductionsindustrial countrybuys “carbon credits”CO2CARBON CREDITSCO2
6. THE RESULTCO2CARBON CREDITSWomen can buy better stoves at a lower price, plus stove maintenance, & some carbon cash!
7. Stoves PoA Philosophy“Creating a self-sustained carbon-financed stove market at very low cost to participants”Equity & Donor $Private $
8. PoAStoves PoA future stateCarbon $+Private $Customer choiceAffordable priceLargely scalableCleaner environment
9. IssuesTo fully recognise the substantial business risks of being the CME for the PoA.To raise funding for the PoA’s registration and the early years of its operations.To create a PoA Management Plan consistent with the PDD and CDM requirements.To become fully conversant with the whole body of CDM PoA-relevant documentation.To establish clear PoA descriptive materials for local stakeholders.
10. Stoves PoA ValuesFair Trade:Individual or grouped carbon credit salesPoA management is funded on a “service fee” basisRise in CER prices goes largely to CPAsProvide up-front Seed Funds for CPAs when requiredMaximum Social Impact:National environmental approval of each CPAConsumer health and safety requirementsMajor environmental benefitsFree market approach:Lowers priceCreates incentives for sustained use of improved stovesIncreases choice
11. From concept to Carbon Credits
12. Objectives of the Monitoring PlanTo ensure compliance with the requirements of UN (CDM), Gold Standard, etc.To achieve the maximum possible carbon credits and value for each participantTo prevent fraud in any formValidated Monitoring Plan
13. Duties of Stoves SuppliersThou shall…sell the same type of stove that was lab ratedkeep current, accurate and honest sales recordsdeliver sales records in computerised formatdeliver original buyer agreements to the PoA CMEinform the CME of any errors or sources of leakagecooperate with all PoA monitoring activitiesValidated Monitoring Plan
14. IssuesTo identify options for stoves testing criteria – submission of a clarification request to the EB.Understanding the rules regarding the start of stoves crediting.Technical options for stoves rating, sampling, monitoring, tracking etc.CPA management planning to comply with small-scale meth limits.Development of legal templates to embody best business practice and CDM compliance.
15. PoA Fair Trade AspectsGroup carbon credits sales if needed.Appliance user is rewarded from CER income.PoA CME is funded on a “service fee” basis.Rise in sales price of carbon credits goes largely to CPAs.CME provision of Seed Fund money for CPAs if required.CARE carbon project principles adhered to.
16. Broker sells VER @ $9 to buyer40% could be project’s shareBuyer can resell VER ~$14CPAs or CME sell CERs in the market PoA management fees recovered from CERs(Project’s ‘40%’ is now 25%)CPA manages the proceeds from creating a marketable carbon credit.Each CPA decides on how to share these proceeds.“Standard” ProjectICSEA CDM PoA Benefits Distribution
17. IssuesPractical lessons now learned about DOE hiring.Pioneering DNA and Host Country Approval processes for a first multi-country PoA.Registration of the CME, business funding and shareholder selection.Start of CME operations and database development.CPA dealflow development in the light of market and regulatory uncertainties.Development of extreme patience & optimism.
18. Many thanks to:SupportersGIZGIZ-CIMNordic Climate FacilityDFIDCARE DenmarkValidating DOE: Tuv RheinlandFirst CPA: International Lifeline Fund, Lira, Ugandawww.ugandacarbon.org